Hutchison seek to hold onto CDMA license
August 9, 2004
Hutchison Telecom will be offering free voice minutes to customers on its CDMA service in an attempt to hold on to their CDMA license in Hong Kong. Customers can make free calls when they are within 10 kilometres of their home and the company hopes that it would add more users to its current 40,000 subscriber base.
Hutchison is partnering its sister fixed line company Hutchison Global Communications (HGC) in providing the free call offer but is initially limited to selected housing estates. Customers can get a free CDMA handset if they sign a two-year contract with HGC and a one-year contract with Hutchison.
A standard tariff costs HK$88 per month, and includes a basic telephone line, two fixed telecom numbers, and basic telecom value-added services. (£1 = HK$13.67)
Calls are charged HK$1 per minute when users are made more than 10 kilometre away from their home.
Hutchison is in danger of losing its CDMA license after the Office of the Telecommunications Authority (OFTA) proposed not to renew the license when it expires next year because it believes the spectrum is under utilised. Hutchison's CDMA network has had as much as 440,000 users in December 1998, but the service has played second best with the emergence of GSM technology.
The OFTA has is also considering revoking CSL's TDMA licence on the same grounds. The spectrum freed up from the two licenses will be used to provide 3G CDMA2000 services. A formal decision will be made in the autumn by the OFTA.
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